Comparing The9 (NCTY) and Its Peers

The9 (NASDAQ:NCTY) is one of 959 publicly-traded companies in the “Software” industry, but how does it compare to its competitors? We will compare The9 to similar companies based on the strength of its profitability, dividends, earnings, valuation, analyst recommendations, risk and institutional ownership.

Profitability

This table compares The9 and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
The9	N/A	N/A	N/A
The9 Competitors	-629.75%	30.37%	-8.95%

Analyst Recommendations

This is a summary of recent ratings and target prices for The9 and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The9	1	0	0	0	1.00
The9 Competitors	5484	21117	44061	1449	2.58

As a group, “Software” companies have a potential upside of 275.51%. Given The9’s competitors stronger consensus rating and higher probable upside, analysts plainly believe The9 has less favorable growth aspects than its competitors.

Institutional & Insider Ownership

0.5% of The9 shares are owned by institutional investors. Comparatively, 42.4% of shares of all “Software” companies are owned by institutional investors. 30.8% of The9 shares are owned by company insiders. Comparatively, 19.7% of shares of all “Software” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares The9 and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
The9	$15.43 million	-$57.55 million	0.78
The9 Competitors	$1.80 billion	$386.73 million	102.50

The9’s competitors have higher revenue and earnings than The9. The9 is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

The9 has a beta of 2.09, meaning that its share price is 109% more volatile than the S&P 500. Comparatively, The9’s competitors have a beta of 1.19, meaning that their average share price is 19% more volatile than the S&P 500.

Summary

The9 competitors beat The9 on 9 of the 13 factors compared.

About The9

The9 Limited operates as a cryptocurrency mining business in China, Eastern Europe, Asia, and North America. The company was formerly known as GameNow.net Limited and changed its name to The9 Limited in February 2004. The9 Limited was incorporated in 1999 and is headquartered in Shanghai, the People’s Republic of China.